If you're an existing Verizon customer without upgrade options, you're stuck paying full retail price: $650 for the 16GB iPhone or $750 for the 32GB iPhone. By contrast, new customers pay $200 or $300, respectively, for the same phones.
In a great service piece, PC World Matt Peckham says once you cancel and re-sign, you can save about $260 on an iPhone from Verizon. He maps out how to cancel and get your new account. It's crazy that Verizon is putting people through this.